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Mendota Heights previews FY2027 budget, weighs revenue options and new federal ADA requirement
Summary
City administrators outlined the FY2027 budget process, reviewed fund types and the CIP (items over $25,000), and discussed revenue options — including using fund balance, local taxes, or asset sales — while flagging an unfunded federal ADA accessibility mandate with an April 2028 compliance date.
City Administrator Cheryl Jacobson outlined the City of Mendota Heights’ FY2027 budgeting process at a May 19 work session, saying the city begins with the prior year’s budget as a base and adjusts for inflation, staffing, contracts, new programming and capital needs. Jacobson said the Council will hold a budget work session in August, aim for preliminary adoption by the end of September and seek final approval in December.
Finance Director Kristen Schabacker walked council members through the city’s fund structure — General Fund, Utility Fund, Enterprise Fund, Special Revenue Funds, Special Parks Fund, Debt Service, Reserve Funds and the Capital Project Fund — and said larger capital projects are included in the Capital Improvement Plan (CIP). Schabacker stated that CIP items are those over $25,000 and noted the City follows a Capital Asset Policy; she added the $25,000 threshold was raised “a couple of years ago.” Councilor Mazzitello observed that CIP items are depreciated.
Schabacker told the council the Facility Reserve Fund is intended to support capital improvements and repairs to city facilities but currently has no dedicated revenue source. The council discussed possible future funding mechanisms including levy revenues and Utility Franchise Fees. Jacobson explained that the city’s primary revenue source is property taxes and that, after the Par 3 debt service ended, the council redirected those dollars to increased Natural Resources programming — a decision that offset the anticipated tax decrease and resulted in no net reduction to property taxes this year.
Assistant City Administrator Kelly Torkelson alerted the council to a new federal requirement that all future public materials produced by the city — including linked documents on the city website — must be ADA accessible. Torkelson described the mandate as unfunded and stated staff expect implementation to be required by April 2028; the council did not adopt any implementation plan at the work session.
Council members also discussed potential revenue-generating options. The group agreed to gather more information about a city-owned parcel on Bourne Lane and whether the property could be used or sold to raise funds. Other ideas discussed included a local option sales tax, a lodging tax, adjusting Utility Franchise Fees, and pursuing naming rights for facilities. Public Works Director Ryan Ruzek noted neighboring cities that host municipal cell towers can receive about $60,000 per year per provider; Parks & Recreation Director Meredith Lawrence said prior discussion of ballfield naming rights had not found public support.
The council briefly addressed whether to permit charitable gambling (pull tabs) within the city; no council direction was provided and staff will retain the topic for future consideration. The meeting concluded when Councilor Mazzitello moved to adjourn, Councilor Paper seconded, and the work session ended at 5:55 p.m.
Next steps identified by staff include returning to the council with additional budget detail during the August work session and further analysis of possible revenue sources and the ADA accessibility workload and costs.
